Tax Implications of Managing US Investments while in Canada

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Chuzz
Posts: 2
Joined: Sat Mar 03, 2018 3:58 pm

Tax Implications of Managing US Investments while in Canada

Post by Chuzz »

Hello!

I am a US citizen moving to Canada soon. I have a Roth in the US, which I have learned I should not contribute to while in Canada, but I also have a US brokerage account. I have heard that even reallocating my funds (without adding a dollar) can have negative consequences tax-wise, but I'm not clear on what those are and how to learn more.

And if I was to move back to the US after building up an RRSP in Canada, does the "no allocation" warning hold that way as well?

Any guidance or references to further reading would be welcome!

Thanks!
nelsona
Posts: 18676
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I thought we covered this. You CANNOT purchase any new investment, nor you purchase any new units of any existing investment through your US brokerage while resident of Canada.

Reallocation involves "shifting" funds, which is still a purchase. You can only sell or hold -- and even this would only be if the broker's firm policy allows it.

You should be planning to move your funds to a Cdn brokerage,
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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